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Private Lending & Conventional Mortgage Advice

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Jennifer Jesse
  • Midlothian, VA
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Concerns from seller on 100% owner finance deal

Jennifer Jesse
  • Midlothian, VA
Posted May 4 2015, 07:19

I have a seller, very interested selling his properties to me when I showed him a lower purchase price, but higher interest rate on his portfolio. It is basically 10 SFH properties, being sold at 1.2 million, interest rate 6%, amor over 30 years.

He liked the monthly amount he would be getting, but was concerned about 100% owner finance, in the event if I was to die or become seriously injured, I couldn't pay the mortgage to him.  He'd have to take back the homes, and legal fee's for everything. I feel he has a valid point, and wondering what my options are.

This is the first owner finance deal I've done, and not sure how to move forward from here. How can I relieve his fears, until i build up more equity in the properties?

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